The 2022 Medicare Physician Fee Schedule final rule included several wins for primary care, including a long-overdue update to clinical labor pricing-the portion of Medicare physician payment that accounts for the costs of employing nurses, medical assistants, and other essential clinical staff. This update, which took effect on January 1, is the first time since 2002 the Centers for Medicare and Medicaid Services (CMS) will correct the longstanding payment distortions between primary and select specialty care stemming from outdated wage data.
Modernizing this data for the first time in 20 years will improve payments and help family medicine practices afford adequate staffing. Since this data was last updated, the mean annual wage for registered nurses has risen by 60% and the average wage for medical assistants has risen by 30%. This update is especially critical at such a time when just fewer than 30% of primary care physicians say their practices are financially stable; while close to half of primary care practices have seen clinician turnover, limiting their ability to care for patients.
Unfortunately, some subspecialist groups continue to oppose the update to clinical labor pricing. They incorrectly assert that Medicare pay reductions for some specialty services resulting from this needed clinical labor pricing correction will threaten patients and insist that this recognition of modern and appropriate clinical labor pricing will most hurt Black, Latino, and other minority patient populations. In fact, the gaps in care experienced by communities of color are most likely to be reduced in primary care settings. These groups are actively lobbying Congress to intervene and halt CMS’ clinical labor pricing change as part of the next government funding bill.
That’s why the American Academy of Family Physicians continues to advocate to protect CMS’ planned update to help physician practices hire and retain nurses, medical assistants, and other essential clinical staff, and ensure all patients have access to quality, comprehensive care for all conditions throughout their lifespans.
Congress needs to hear from YOU now about why the clinical labor pricing update is important for your practice. Send your message today!